Motorcycle Loans: Nfcu's Offerings And Your Options

If you're looking to buy a motorcycle, there are several factors to consider before making your purchase. These include the condition of the vehicle, the mileage, the body, and the drivability. It's also important to keep in mind the ongoing costs of ownership, such as maintenance, fuel, storage, and insurance. One option to consider when purchasing a motorcycle is taking out a loan. Navy Federal Credit Union offers motorcycle loans for new and used motorcycles, with different interest rates and application processes. When applying for a motorcycle loan, you will need to provide certain details, such as the Vehicle Identification Number (VIN), make, model, year, engine size, and mileage. It's also important to consider your budget and choose a bike that fits your intended use.

NFCU motorcycle loan requirements

Navy Federal Credit Union (NFCU) does offer motorcycle loans. When applying for a motorcycle loan, you'll need to provide the following details for yourself and any co-applicants:

• Vehicle Identification Number (VIN), make, model, year, engine size, and mileage
• Current housing, employment, and income information
• Any trade-in information (title, loan details, registration, etc.)
• Amount expected to finance (including motorcycle purchase price, taxes, tags, title, and warranty, minus any down payment)

If you're refinancing a motorcycle loan that's currently financed with another lender, you'll need to provide additional information, such as the loan details and outstanding balance.

NFCU offers loans for both new and used motorcycles. For new motorcycles (2024 models or newer) with less than 1,000 miles, the minimum amount financed is $25,000 for terms of 61-72 months and $30,000 for terms of 73-84 months. A new motorcycle loan of $15,000 for 3 years at 8.95% APR will result in a monthly payment of $480.

For used motorcycles (2023 models or older) with more than 1,000 miles, the minimum amount financed is $25,000 for terms of 61-72 months. It's important to consider the condition of the vehicle, including mileage, body, and drivability, as this can impact maintenance costs.

When considering a motorcycle loan, it's essential to evaluate your budget and determine the purchase price and loan terms you can afford. Don't forget to include ongoing costs such as maintenance, fuel, storage, insurance, and licensure in your financial plan.

New vs. used motorcycle loans

When it comes to buying a motorcycle, there are several factors to consider when deciding between a new or used vehicle. Here are some key points to keep in mind regarding new vs. used motorcycle loans:

New Motorcycle Loans:

• New motorcycles typically refer to models from 2024 onwards with less than 1,000 miles on the odometer.
• Newer models may have higher loan amounts, with minimum financing amounts ranging from $25,000 to $30,000, depending on the loan term.
• New motorcycle loans may offer lower interest rates and more favourable terms compared to used motorcycle loans.
• Dealerships often provide financing options for new bikes, and some manufacturers, like Harley-Davidson, offer financing for both new and used bikes.
• When buying new, remember to consider the warranty coverage offered by the manufacturer or dealer.
• New motorcycles may have lower maintenance costs in the initial years of ownership.

Used Motorcycle Loans:

• Used motorcycles generally refer to models from 2023 or older, or those with more than 1,000 miles on the odometer, regardless of their title history.
• Used-motorcycle loans typically come with higher interest rates and annual percentage rates (APRs) than loans for new bikes.
• When considering a used motorcycle, it is important to inspect the vehicle's condition, including mileage, body condition, and drivability, as this can impact long-term maintenance costs.
• Maintenance and accident records can provide valuable insights into the motorcycle's history and help you understand potential repair or replacement needs.
• Used motorcycles may offer more affordable options, but it is crucial to compare interest rates, monthly payments, and other factors to ensure the loan aligns with your budget.

General Considerations:

• It is recommended to have a plan for ownership, including storage options, anticipated usage, and any other obstacles or considerations specific to your situation.
• Whether buying new or used, it is important to consider the overall cost of ownership, including ongoing expenses such as maintenance, fuel, storage, insurance, and licensing.
• Before applying for a loan, gather relevant information such as the Vehicle Identification Number (VIN), make, model, year, engine size, mileage, and your current housing, employment, and income details.
• Compare loan options from different lenders, credit unions, or banks to find the most favourable terms and interest rates.
• Preapproval for a loan can help you understand your budget and negotiate with dealers without revealing your maximum financing amount.

Motorcycle loan rates

Navy Federal Credit Union offers motorcycle loans for new and used motorcycles. The rates, terms, and discount points are based on an evaluation of each member's credit history, loan-to-value (LTV), occupancy, payment type, loan amount, and loan purpose. Therefore, your rate and terms may differ.

For new motorcycles (2024 and newer models with less than 1,000 miles), the minimum amount financed is $25,000 for terms of 61-72 months, and $30,000 for terms of 73-84 months. As a payment example, a new motorcycle loan of $15,000 for 3 years at 8.95% APR will result in a monthly payment of $480.

For used motorcycles (2023 and older models or motorcycles with more than 1,000 miles), the minimum amount financed is also $25,000 for terms of 61-72 months.

Before applying for a motorcycle loan, it is important to consider the ongoing costs of ownership, such as maintenance, fuel, storage, insurance, and licensure. Additionally, ensure that you have the appropriate license to operate a motorcycle and that you have completed the necessary safety training.

Motorcycle loan application process

If you're considering a motorcycle loan, it's important to ask the right questions and make sure it's a smart investment for you. Before applying, you should consider what payment fits into your budget and determine the purchase price and loan terms you can afford. Don't forget to include ongoing costs such as maintenance, fuel, storage, and insurance in your budget.

When you're ready to apply for a motorcycle loan, you can do so over the phone or in a branch. Before applying, make sure you have the following details for yourself and any co-applicant:

• Vehicle Identification Number (VIN), make, model, year, engine size, and mileage
• Current housing, employment, and income information
• Any trade-in information (title, loan details, registration, etc.)
• Amount expected to finance (including purchase price, taxes, tags, title, and warranty, minus any down payment)

If you're refinancing a motorcycle loan that's currently financed with another lender, you'll need to provide the following:

• Account number
• Current lender
• Current loan payoff amount
• Miles on the motorcycle

If you're still shopping but want to get preapproved for a loan to buy from a dealership, you'll need to provide the amount you expect to finance (including motorcycle purchase price, taxes, tags, title, and warranty, less any down payment). Remember, while you negotiate the best price with a dealer, don’t reveal to them the maximum amount of financing you're preapproved for.

Additional costs of owning a motorcycle

Yes, Navy Federal Credit Union does offer motorcycle loans.

When it comes to owning a motorcycle, there are several additional costs to consider beyond the initial purchase price. Here are some key expenses to keep in mind:

Maintenance and repairs: Unlike cars, motorcycles require more frequent maintenance and repairs. This can add up over time, with some owners reporting annual maintenance costs of around $1,000.

Fuel: While motorcycles tend to be more fuel-efficient than cars, fuel costs will vary depending on how often you ride. On average, you can expect to spend around $300 per year on gas, but this can be reduced by choosing a model with better fuel efficiency.

Insurance: The cost of motorcycle insurance will depend on your location and the type of coverage you choose. In Florida, for example, insurance can range from as low as $52 per month to an average of $80 per month for a full-coverage policy.

Storage: If you don't have a place to store your motorcycle, you'll need to factor in the cost of renting a storage space.

Licensing and registration: Obtaining a motorcycle license typically involves an application fee of around $30, as well as the cost of instructional courses, which can be about $100 for beginners.

Riding gear: Protective gear, such as a helmet, eyewear, and durable clothing, is essential for your safety. A helmet alone can cost anywhere from $70 to over $300, and the total gear can cost around $1,300.

Accessories: If you plan to use your motorcycle for long-distance rides or touring, you may need to invest in additional accessories, such as extra storage space, which will increase the overall cost.

It's important to carefully consider your budget and the ongoing costs of ownership before purchasing a motorcycle to ensure you can enjoy your new vehicle without financial strain.

Frequently asked questions